The Misconception Of Multi-Level Marketing

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Author: Chris Keenan

Article source: http://homebusinesstoday.blogspot.com/. Used with author's permission.

Ever wonder why people are so turned off at the mention of Multi-Level Marketing? Is it legal? Is it a pyramid? Who benefits the most? Where does the money flow? In this article we will examine basic differences between Multi-Level Marketing and a Corporate Structure.

Let's take the corporate structure first. Almost all of us work in this type of structure everyday. The corporation or company is headed by a CEO. Below him/her are upper management people i.e. Vice President, Controller, Senior Sales Exec...etc. Below them are middle management people i.e. Department Heads, Retail Directors, Consultants and various Supervisors.

Finally we reach the Sales Representatives, Customer Service Representatives, Stockers, Cashiers, Cleaners, Drivers, etc.

So who makes the most money in this type of structure? If you were flow chart this all out, it would look like a "Pyramid" The CEO makes the most money, then a few upper management, then more middle management, then most workers. It is the person at the "top" of this "pyramid" that makes the most money, because in this type of structure, you are paid based on "where you are" in the structure. The only ways you increase your earnings are if someone in the structure gets fired, dies, or quits. As a result, everyone in the structure can move up.

So....lets take a look at a Network Marketing Structure and compare. On the surface, both structures are mirror images of each other. BOTH look like a "Pyramid" structure. Flowchart it out. An affiliate sponsors someone, they sponsor more, they sponsor more...etc. But.....who makes the money here? The guy at the top? Possibly, but most likely not. Here's why:

Even though this structure looks identical to a corporate structure pyramid, in this structure you get paid STRICTLY on what you do, not on where you are within the structure. Wouldn't it seem fair that if you do more work, you should get paid more money? This structure is simply a structure of business owners. Pay is based ONLY on what you do, not your position within the network. This is what differs Network Marketing from a typical "Corporate Structure Job".

Here, only YOU are in control of your income. With a job, someone else is in control of your income. Think about it. Which option is the most fair? If you have comments or questions, please write us at www.bizmancan.com